>> yes. >> steve: we'll see more tricks in the after the show show. by the way, because on sunday joe biden is getting sworn in, a special edition of "fox & friends" will be here live sunday morning. >> gretchen: hop on for our after the show show. have a fantastic week. see you monday. breaking developments in the siege of the sahara, that hostage crisis involving u.s. oil workers overseas. we're getting new reports that the terrorists want to swap the americans for jailed terror leaders in africa. more than 100 people taken hostage. dozens of other are still unaccounted for. this story is changing by the hour. good morning. that's where we start, i'm bill hemmer live in "america's newsroom". martha: good morning. i'm martha maccallum. details are very murky. an american plane reportedly landing in algeria overnight following a raid to save hundreds of people held captive in a natural gas

complex in the dessert. here is secretary of state hillary clinton. >> because of the fluidity and the fact that there is a lot of planning going on, i can not give you any further details at this time about the current situation on the ground but i can say that more broadly, what we are seeing in mali, in algeria, reflects the broader strategic challenge, first and foremost, for the countries in north after from and for the united states and the broader international community. bill: watch this story too. the hostage matter being described as fluid and dangerous and our chief washington correspondent james rosen leads our coverage this morning. what is the latest now, james? >> reporter: bill and martha, good morning a lot breaking on this story. just in the past few minutes the algerian terrorists behind this plot are reportedly demanding according to a maur taken yaw news report.

a looking to trade americans for two figures behind bars. not clear where they are behind bars. algerian news agency says 650 hostages have been freed including 573 algerians. unclear too how these terrorists would have goten ahold of all 650 of those hostages. they hail from 10 countries and were seized at a bp national gas complex in a remote stretch of the sahara. algerian special forces yesterday launched a helicopter assault on the gas complex which the report that they killed 18 of the hostage takers. two british hostages and two filipino hostages were also killed in the fighting. british prime minister david cam ran says the terrorists were large in number and heavily armed. his government received no advance word of this rescue operation. defense secretary leon panetta is in london this morning. he said this morning that u.s. officials are quote, woulding around the clock to

assure the safe return of our citizens, bill. bill: throughout this ordeal we have heard this could be tied to what is happening with the french in the neighboring country of mali. now is that true or can we dismiss that now, james? >> reporter: no, i think it is undeniably a fact are to. the group that carried out the original assault on the bp complex is called the masked brigade. they are based in mali and are an offshoot of al qaeda. islamist terrorists took over the northern half of mali some nine months ago making it the largest terrorist safe may have in the world. france just dispatched 2500 troops to mali. speaking in italy yesterday, secretary panetta said the u.s. decimated al qaeda's leadership then he added a important qualification. >> there are still a threat. they're a threat in yemen. they're a threat in somalia. they're a threat as we speak in mali. aqim is part of al qaeda.

so we still have a challenge to confront terrorism and to make sure that they never again get the opportunity to attack our country. >> reporter: and the french are saying just after the early days of their operation in mali that the terrorists there appear to be better fortified than they were told. bill: james thank you. james rosen on that out of washington. continuing updates throughout the morning. martha has a bit more now. martha: big questions about al qaeda in northern africa which has been so much discussed going back to the benghazi issue. just a little back ground on algeria which won its independence from france in 1962. it is nearly four times the size of texas. it is the largest country on the continent of africa. sunni muslim is the state religion practiced by 99% of the population in algeria. it borders two countries in turmoil, libya and mali. as you can see on this map. so al algeria received almost $3 million in

american aid in 2012. bill: what about these americans now? what about their fate and what about the future? in a moment hear new warnings the raid in algeria might be just the beginning. national security analyst kt mcfarland that america's light footprint on terror could mean many more deadly attacks like the one we saw at our consulate in libya. she is here next hour along with general jack keane. we'll discuss all of that with two outstanding guests coming up. martha: onto this story now because reaction is pouring in today to lance armstrong's explosive interview with oprah winfrey he finally admitted after years of denials and of blaming others and calling others liars that he did indeed use performance-enhancing drugs throughout his career and they were quote, just part of the job. casey stiegel is live outside livestrong headquarters in austin, texas this morning. casey, he said some pretty

powerful stuff and put a lot of questions to rest last night. >> reporter: yeah, martha, he did and i don't know about you but i think the most powerful part of the interview when right off the top when oprah asked him a series of simple yes or no questions. she asked things like have you used banned substances? did you blood dope? did you use drugs like testosterone, human growth hormone and did you do it when you were competing in all seven tourp today france races and armstrong answered yes to every single one of those questions. the only no replay he -- reply he gave when oprah asked was it humanly possible to win seven consecutive titles without using these drugs and again he said no. when he was asked why now, why tell the truth now, he didn't really answer other than that he viewed the situation as quote, one big lie. apparently doping was so prevalent in his world he said, quote, using drugs was like putting air in bike tires or water in water

bottles. he described what he called his ruthless desire to win. listen. >> i was used to controlling everything in my life. i controlled every outcome in my life. >> you've been doing that forever? >> yeah, especially when it comes to support. but just the last thing i'll say now this story is so bad and so toxic, and a lot of it is true. >> you said to me earlier you don't think it was possible to win without doping? >> not in that generation. i'm not here to talk about others in that generation. it has been well-documented. i didn't invent the culture but i didn't try to stop the culture. that, that is my mistake. and that is what i have to be sorry for. >> reporter: he obviously seemed a little shifty at times, martha. of course part two of this big interview airs tonight on the oprah winfrey network.

martha: at one point she asked him about being, humanitarian or being a jerk you know and whether or not those labels fit in any way. he said he thought they both fit to a certain extent. that goes to the issue of the livestrong foundation that he did so much work with. how are they reacting this morning, casey? >> well, you know, it is interesting, you know he stepped down from the board here back in october when of course these big damning reports were released and the livestrong foundation we should point out has raised some $500 million for cancer research since it was started by lance armstrong back in 1997. it helped 2 1/2 million people with cancer worldwide and immediately after last night's interview the foundation releasing this statement, and i'm quoting here, even if the wake of our disappointment, we also expressed gratitude for lance as a survivor for the drive, devotion and spirit he brought to serving cancer

patients and the entire cancer community. we should point out that fox news channel is sitting down this morning with an exclusive interview with a current livestrong board member with reaction to last night's interview. we'll have that for you throughout the day here on fox news, martha. martha: that will be interesting. casey, thank you very much. >> reporter: yeah. bill: kind of had to do it at some point. i don't think he gets lawyers off his back. they will still pursue him especially the department of justice. armstrong's career, seven-time tour de france winner. that what a streak that was. in 2002 "sports illustrated" called him the sportsman of the year. he won a bronze medal at the 2000 olympic games which the ioc stripped from him. anti-doping agency erased 14 years of history and records including those tour de france titles and banned him from cycling for life. the department of justice said to be considering

joining a whistle blower suit brought by former teammate floyd landis. martha: lance armstrong is one of a long list of athletes making big announcements about cheating in recent years. so is the sports world's win at all costs mentality, has it really gotten out of control? are athletics what they should be in this country? we'll discuss that with sportscaster jim gray and dr. keith ablow. great panel to take that issue on. bill: amazing week to see both stories break. on the jobs front, america, it has been one year since the president's jobs council last held an official meeting this is the photo from january 17th, 2012. the white house says the council was created to provide nonpartisan advice to the president on ways to create jobs and prosperity. unless the president acts it will disband at the end of this month. stuart varney, anchor of "varney & company", fox business network. what have they gotten done?

7.8%? >> they have gotten done virtually nothing, bill. as you said a year ago was the last formal meeting of this council. at that meeting a year ago, they put forward some proposals, a very limited scope. for example, pressed for more infrastructure projects, faster tourist and business visas, look back at regulations. virtually nothing has happened. you have to say this council is all but dead. it was split right from the get-go between business, which wanted to stimulate private sector, and some labor leaders who wanted more government spending. it was split right from the start. it has achieved virtually nothing. bill: sounds like the divide idealogically between john boehner and the president in the first place. any good news out of this story? >> out of this particular thing and council meeting and vrtually dead? no, i don't think it is. it made no recommendations that were implemented that created any serious job creation. i have good news on other fronts, housing and your

401(k). but no good news related to that jobs council. okay? bill: a bit of a bounce on the last two things. we'll take it any way we can get it. 9:20. thank you, stuart. >> sure thing. martha: we have a jam-packed show ahead for today. outrage after a new report shows billions of your tax dollars are going overseas to try to create energy jobs here. hmmm. how would that work? the shocking congressional report calling the government's stimulus program, a failure. bill: also as the president gets ready to start his second term he may get help in a way no other president has done before. the new move by the white house that has all the political watchers calling it unprecedented. karl rove reacts on that. martha: brand new numbers on the nationwide flu outbreak as another state reports a concerning shortage of the vaccine. >> we've been going through it very quickly. so we've at times we're out and you know, as soon as we get it in there is definitely high demand one.

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martha: boy, what a crazy story this one is. take a look. on the right you see the happy lottery winner and on the left you see his body being exhumed in chicago. you remember this story probably from last week. they found poison they believe and they want to exhume his body so they can see whether or not he was indeed poisoned after winning the lottery ticket. a lot of suspicions about members of the family. they have a lot of questions that need to be answered and so they have now officially begun exhuming this man's body. his name is aruof khan. cook county medical examiner is taking this on. any developments we'll let you know. bill: 400 grand on that lottery ticket. president obama putting finishing touches on his inaugural speech. you will see it live here on fox news. he is transforming the

campaign operation that helped him win back the white house into an advocacy group pushing his agenda on the american people. karl rove, former senior advisor, deputy chief of staff with george bush and a fox news contributor and the man who helped organize the political action committee, american crossroads. how are you doing, karl? >> fabulous. bill: morning to you. a little under the weather. we'll endeavor together. you first of all called this shrewd in one word? >> they have this army of people passionate about barack obama. they will try to unleash them on members of the congress to advocate the president's agenda. they know a lot about these people. how to contact them, how to motivate them. how to persuade them. having said that there are difficulties and challenges. bill: how so? >> well, first there is the practical one that it's hard to take enthusiasm about an individual and turn it into enthusiasm about a cause. they found this for example during the battle over health care where they be too the people they had in '08 and found it difficulty

to motivate them to be with them on behalf of their health care initiative. second of all, it will diminish enthusiasm by members of congress when they get this contact. dismiss it as local people who they got to listen to, republicans say these are obama people and democrats will say what is my president doing putting me in a hard place? a red state democrat against gun control will be enthusiastic being lobbied by the president? bill: that is interesting. >> final issue is ethical. this is fraught with all kinds of ethical perils. laws say the white house can not spend resources to lobby the congress. and that may mean, you can't take white house personnel and send them to go do fund-raising events for this obama for america. there are strictures what guidance the white house can give. you can't direct a group. the white house can't pull the people in, here are the five things we want you to do, go do them. bill: but the intent here, and familiar players, jim messina, david axelrod, stephanie cutter.

robert gibbs, those are all people that have been with him for the past five plus years. but the idea is to push what the president believes are the right ideas and policies for the country regardless as to whether or not the democratic party is pushing for the same thing. >> there will be a tension. look, increasingly democrats my name is on the ballot in 14 or 16. u.s. is not, mr. president. what the heck are you doing putting me in a difficult place? let's not pass over the ethics issue. on the inaugural committee, we know the inaugural committee is collecting information everybody attending the inaugural and will give it over to outside groups. is one of those groups obama for america? do we really want the inaugural committee information given to the president's political arm to be used on behalf of his advocacy causes? there might be ethics questions about things like that that pop up. bill: is this something republicans need to counter with? is there something republicans have in place to counter? as a strategist your civil is this something that would concern you?

>> outside groups believe in an issue. opponents of gun control will be meeting and talking coordinating their efforts on a regular basis. the question how effectively will they do it? the advantage of using obama for america is, is has a gigantic list of people and know a lot about them and how to motivate them and get them out. bill: i still don't know if republicans can counter that. what they found out in november, these people know how to reach their voters! that republicans could not even account for. >> but remember the purpose here. it is not to get that person out to vote. it is to get that person to influence a member of congress to go their way. my point is this, if you're a member of congress who is republican you're sitting here saying these are not local people whose votes we are trying to get. these are partisans. i dompblt need to pay attention. if you're a democrat in awkward place, red district, red state and put awkward place by your president you're saying what the heck are they doing? don't they understand?

i can't be for this. bill: we'll watch the points you make especially on the ethics matter. a built of a frog. it is all going around. back in the nook. >> there you go. bill: last time we saw each other in the nook you know what happened. that was election night. on monday join us for our fox news exclusive coverage of the inauguration that begins the second term. martha and i will be in washington, d.c. our coverage begins at 9:00 in the morning on monday and goes throughout the day. bret and megyn take over 11:00 a.m. eastern time. join us for everything that happens on monday in washington. martha. martha: big day. we're looking forward to that. coming up a brand new report on cancer is in america. what it reveal about the ongoing fight to save lives. bill: waiting for manti te'o. when will he tell is his side of the story. stunning new details what he said to reporters after he knew his girlfriend did not exist. oh!

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bill: fox news alert. word from the white house regarding this christian pastor, an american, who has been in jail in iran for some time. expected to go before a judge next week. here is the statement from the white house. we remain troubled by the case of u.s. citizen saeed abedini arrested three months ago on charges relating to his religious beliefs. he is a christian now, conversion. we call upon iranian authorities to release him immediately. this is something we've been watching for several weeks as it develops because the word from tehran this week, his case will be handed to a judge who has a very tough reputation inside of tehran. we're watching that story. we'll see whether or not the white house statement can move anything.

martha: some brand new numbers that show a major drop in cancer deaths in the united states. the american cancer society releasing the new statistics. rick leventhal is live here with more on this. rick, what are we seeing? how remarkable is this? >> reporter: pretty remarkable according to the head of the american cancer society who cause it, reason to cheer. steady progress in battling the disease and declines in some common forms. according to the latest national data, overall canser death rates dropped from 2002,000 nine. meaning more than a million lives have been spared including more than 150,000 in 2009 alone. specifically death rates have dropped more than 30% for colorectal cancer and breast cancer in women and more than 30% for lung cancer in men. ostate cancer has dropped more than 40%. but the study reveals there will be more than 1.6 million new cancer cases this is year and more than half a million cancer deaths. so obviously much more work to be done.

martha: so what is the reason they think for the decline? what are they doing right? >> reporter: researchers credit several factors. some are obvious. fewer people are smoking. that helped spark a decline in lung cancer. there is improvements in detection and treatment for common canners including coal low reock call and prostate. one in four deaths are cancer related. certain cancers are on the rise including liver, thyroid and pancreatic. a less than 1% rise in cancer rates among children. if more people get regular cancer screening more lives can be saved. martha: interesting research. thanks so much, rick. bill: word of a shark attack sent a surfer to the hospital and how that surfer is doing today. want to go back in that water? we'll find out. >> growing backlash on president obama's decision to issue executive orders on gun control. one lawmaker not holding back on this. >> this is a president who i

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bill: we have yet to hear directly from manti te'o since the hoax broke involving his nonexistent girlfriend. notre dame maintains he was duped in a cruel internet joke. now we find he talked about her in interviews after he supposedly learned that she was not real. mike tobin on the story out of chicago today. the dates seem to be conflicting now about his

own story on that timeline. mike, what did you find? >> reporter: well, bill the story gets pretty convoluted when it isn't true. let's try to make sense of the date. starting with december the 6th. that is the date the university and te'o learned there was no lennay connect cue kekua. he got a phone call from the supposed dead girl's friend number with someone on the line. december 8th. he gave an interview to a website. he talked about losing his grandmother and girlfriend to cancer. on december 9th. he gave interview on december 10th. he talked about playing after the fix tick schuss girl died. after the fictitious girl was buried. twice he went back to the story of heart break when he knew it wasn't true. 9 athletic director of the notre dame said the university didn't know until december the 26th. bill: how are you gauging reaction from students on that campus? they revered this guy.

they wore hawaiian leias in sport of him all year? >> reporter: first time, let's hear the tape. we're starting to hear skepticism from students. >> can't find the time and money to visit her before she dies? he is emotionally attached to her. she is about to die of cancer. she says don't come if you need to play a game but he doesn't visit her at all? i mean what kind of love is that? >> reporter: now to be fair, the large majority of students on campus that our crew rounded up stood with their star linebacker. >> it is a kid and we still make mistakes as smart and hard-working as we are. yeah, myself, i make mistakes all the time. we all do. >> reporter: now a lot of them say they just want to hear from te'o and give him a chance to make sense of it all. he was supposed to speak yesterday. that just kind of faded away. so we're waiting. bill? bill: thank you, mike tobin

out of chicago on that. you follow the timeline, you know, december 6th. got the heisman. december 26th he tells his coach. meets with the ad the next day. national championship game is what, 11 or 12 days later on the 7th of january? that's wacky. martha: i can't help be struck by the young man says, we all make mistakes. we don't all make up people. go on national television. tell long stories about them and keep on believing the story and perpetuating it after we learn it is a hoax. this is a very bizarre situation. i will say it again. i feel for him. something is going on there and we're going to talk about it with dr. ablow and with jim gray in a little while and --. bill: some of these sports stories are exclusive to supports. this is not. martha: no. bill: this transcends the sports world. goes to social media. and goes to the level of honesty you have, whether it is him or the school, or one of his colleagues out in california.

martha: the pressure put on these young heroes to perform and to be people that you're not. ie, lance armstrong as well. we'll talk about all that coming up. all right. get back to washington for a moment. republican lawmakers are slamming president obama for using the newtown school shooting to his own, quote, political advantage. texas senator ted cruz, he is a new senator. he says that the president, he believes is on a power trip. here's what he said. >> this is a president i think who has drunk the kool-aid. he is feeling high on his own power and he is pushing on every front. on guns. i think it is really sad to see the president of the united states exploiting the murder of children, and using it to push his own extreme anti-gun agenda. martha: very strong words there from senator ted cruz from texas. joined by juan williams, fox

news political analyst. mary katharine ham, editor-at-large at hotair.com and fox news contributor. she had so much fun yesterday she came back again for more. good morning. juan, strong words from the senator. what do you think about that? >> you know, so sad. he is talking about kool-aid. i think he is the one that is drinking the kool-aid in terms of the nra and people who are extremists. the president is doing is not exploiting the deaths of young people but i think responding to a terrible massacre, not only the massacre in connecticut at newtown but the shooting of congressman gabby giffords, the shooting at a record can, colorado, at the movie theater, the shooting in wisconsin. we have a situation where the president is responding to a crisis of guns being easily accessible and used in these mass curse and i think it is appropriate that the president would respond. martha: you know, legislatively, ted cruise touched on this as well, this is a very high hurdle. we have a full screen that

we want to pull up. these are 11 democratic senators with a or b ratings with the nra, including harry reid said, well i think this will be a little difficult. the president might want to think twice the way he approaches it. i'm mara phrasing it but. >> [ra is bipartisan group of millions of americans want to protect the second amendment and aproves from many senators and house members. hear them smeared as extremists is ridiculous. they have constitutionally to then together to protect their rights. the legislative hurdle is high. that is why he came out with the executive orders. i think he blinked a little bit frankly. a lot of them things should have been doing four years, i don't know, appointings atf director or prosecuting gun crimes. he promises to do more even though gun prosecutions gone down 40% since the bush

administration. the question is are the things dearest to his heart, assault weapons ban, are they going to help with something like newtown or something just for show? the fact is, in connecticut there was an assault weapons ban in place. the fact is, that for columbine, there was a national assault weapons ban in place. my question when you take away rights from law-abiding people are actually doing anything that will solve the violence problem? or are you just doing things for show because it makes you feel good? >> i think he is doing things. when you talk about these things, let's look at the assault weapons ban but also let's look at limits on the size of the magazines that can be sold. >> -- in columbine. martha: i want to get back to this question in sort of the president's way going about it. that was a question raised by ted cruz in many ways. there is a feel the president is sort of trying to bulldoze things through. that he is, sort of using his win, which he takes every possible opportunity

to point out, hey i won, and there are consequences to winning. we remember him using similar words back on health care with john mccain in the room. hey, i won and there are consequences to that. i think a lot of people are raising questions about leadership. to mary katherine's point, juan, the goal is to make sure that a newtown situation never happens again. the president didn't mention entertainment. he didn't mention much about mental health. so if you really want to address these props, if you really want to prevent them, are you trying to make republicans look bad or trying to make a solution here? >> martha, the first part of your question is about power, the exercise of power. and let me point out that president bush, the first president bush, president clinton and others used executive orders on guns in just exactly the same manner. we could go back to president johnson, the aftermath of the '60s assassinations doing much the same thing. martha: that's right. >> this is not out of line with presidential use of power which would seem to be

what mr. , senator cruz is trying to argue. and then the second part, you know, the whole idea he is somehow, you know, drunk on this power and he is arrogant, he is cocky after winning an election, it was president bush, the second president burke who said, he had some political capital to expend after his re-election. i think this president feels he has some political capital. and that is in keeping with the idea he just won re-election. >> president said it once. obama said it 18 times. >> i'm sorry. what did you say. martha: sate it one more time. >> bush said it once. obama said it 23 times since he has been reelected. >> okay. >> the executive order stuff comes from the fact he does this pretty often taking out whole sections of immigration law. trying to do cap-and-trade in these ways. he made a lot of moves in this area that have built up and made people go, hey, what the heck is going on here. but the fact is he still does face really high legislative hurdles. he wants to do this emotionally.

the children on the stage were a signal that he doesn't want you thinking rationally whether these things will work to end violence. >> they were kids, killed, mary katherine. >> he is not thinking rationally about this. he knows emotional bullying. that is how he will get there. >> there were kisds killed and we should have a discussion whether these laws take away people rights might prevent that in the future. martha: the results are what needs to matter in the end, with the best way to solve these problems and requires leadership. i thank you both for being here. >> good point. martha: juan, mary katherine, thank you. bill: we're learning the government is spending $4 billion on green energy companies, companies out of europe. so what did the taxpayer get from this deal? martha: a firefighter trying to reach a toddler trapped in a burning building and then this. we'll show you what happened when we come right back. [ woman ] ring. ring. progresso. your soups are so awesomely delicious my husband and i can't stop eating 'em! what's...that... on your head? can curlers!

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martha: a rare tiger shark attack. not a tiger attack. a shark attack, tiger shark,

in hawaii. a surfer was bitten multiple times suffering a serious gash on his arm. one local surfer says the odds are now in his favor he believes. >> people are surfing today? what is going on today? >> the bay is closed until noon. given the statistical probability of getting hit by a shark, this will be probably the safest place to surf for quite some time. they generally are pretty territorial. we've seen a lot and we've known they're there. that is one of the things we say when you're surfing, when you put your foot in the water you go a number of steps lower on the food chain. martha: so the beach has been reopened. the injured surfer should be okay and i guess it is like lightning, you know? hang out someplace where it just struck you're in good luck, according to that guy. bill: thinking about "the life of pi". martha: i think so. i was going to sneeze, tell youing truth. bill: poor thing. the weekend is upon us soon.

shocking new report now shows american taxpayers are forking over $4 billion for green energy projects, rather. the companies that work out of europe. matt mccall, president of penn financial group llc. good morning to you. these were european-based companies. >> yes. bill: or asian-based companies doing work here in the u.s. are we clear on that? >> exactly. bill: what did you find out. >> they're foreign-based companies but subsidiaries here in the united states. doing research i found one company in particular i thought was interesting, a power generation systems. they are, according to the sec they have a office in san diego. somebody went to check the office. it was actually vacant. it is chinese-based company has a subsidiary in the united states. they're part of this big wind farm they will be building in texas. if this goes through and they get a grant from the government, it will create 300 jobs here in the united states, which is fantastic but 800 jobs in china. bill: no kidding? >> basically our taxpayer

money will support this chinese-based company and create 800 jobs in china. bill: you wonder what we get out of it. what this shows, this came from stimulus money, right? >> exactly. bill: 2009. before the green energy companies would get tax credits. >> yes. bill: but through the stimulus law that was signed, they received money. >> oh, yes. bill: cold cash. >> called section 1603 of the american recovery and reinvestment act which is in 2009 as you mentioned. about $16 billion have been dolled out so far. 4 billion gone to the foreign companies. basically going back to a lot of them, spanish, company, spanish renewable energy company got $1.8 billion from the u.s. taxpayers to do work here in the united states. but isn't the goal here to basically spur on growth of american companies. create american jobs? sure. bill: i agree with you. that is what we thought it was for though. >> we did. bill: what that shows you this white house was dead set on pursuing a green energy policy. and they did it through a stimulus that we thought was going for something else.

>> at all costs too. basically they're taking our hard-earned money at a time when we're running, about, how much trillions of dollars we're in debt right now? you're taking money to give it to china, chinese company, china, just announced they're growing at 7.9%. we're barely growing our economy at 2% and we're giving them money. bill: critics say we boosted electricity output. that was productive for the united states. they don't call it outsourcing. they call it insourcing. >> you can call it whatever you want. call it whatever you like. the goal of the stimulus was to create american jobs, yes i will give them a bit of credit they will create some american jobs here. the problem, they're not long-term. they're not sustainable. the other issue you're supposed to push entrepreneurship, small business here in the united states. one of the small business renewable energy companies says we can't compete. when the money is doled out, these big firms come from europe and asia and they jump in right away and get the american money. bill: you wonder how many more stories and companies

we'll hear about this? started in solyndra. $4 billion is awful lot. >> obama said 4 more billion in the budget. bill: joy. e-mail, on twitter. at bill hemmer. by. because you asked. martha: brand new numbers from the cdc how deadly this flu season is becoming. what is story this is developing to be. a live report just ahead. bill: certainly is. why would lance armstrong cheat and then lie repeatedly? winning at all costs, with jim gray today and psychiatrist, dr. keith ablow on this. ♪ . .so as you can see, geico's customer satisfaction is at 97%.

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bill: check out this video. this is what happens to a firefighter trying to save a family inside of a building. see that? martha: oh. bill: firefighter heading up a ladder to rescue a child from a burning building. this is eastern russia, siberia. he is clearly dazed but managed to hang on. that might have saved his life. another firefighter coming to his aid and grabbed a toddler. the fire department says both are okay and no serious injuries. martha: thank goodness. we are awaiting for a cdc news conference for an update on the national flu outbreak. we know nine more children have died in this.

that brings the juvenile death total to 29. 30 states in new york city reported high levels of the flu. that is up from 24 states in last week's report. states like arizona, more and more people are rushing out to get flu shots. one pharmacy manager says they can't keep the vaccine in stock. >> we've been going through it very quickly. at times we're out. as soon as we get it in there is definitely high demand almost immediately. martha: that is not surprising. jonathan serrie live in atlanta. what is the latest from the cdc, jonathan? >> reporter: martha, cdc officials are telling fox news they believe this year's flu season, is probably, probably about halfway over. they emphasize probably because flu is hard to predict but they base this estimate on what they have witnessed during previous flu seasons. right now we have a map to show you of the latest statistics suggesting that 48 states are now reporting widespread influenza activity. that is up from 47 states

during the previous reporting period. generally, flu activity continues to decrease here in the south but it is increasing elsewhere in the country especially out west. the latest numbers suggest this is going to turn out to be a bad flu season, particularly for the elderly. in fact, during the latest reporting period, which ended january 12th, hospitalization, hospitalization rates were up considerably for people 65 years of age and older. martha? martha: so what about the vaccine supply, what do we know about that? >> reporter: well you mentioned there was some spotty outages. if the first place you check is out of vaccine continue to call because public health officials say there is plenty of vaccine supply. in fact manufacturers now revised their estimates. originally they were anticipating producing 135 million doses this year. now they are anticipating that will be 145 million. at least 129 million doses

have already been distributed. so public health officials are telling physicians it is not too late to order more vaccine and telling patients it is not too late to get flu shots. other exciting news this week, the fda approved a new vaccine called flu block. it is manufactured without requiring the usual chicken eggs you use for making standard vaccines. in a written statement, an fda official says, quote, the new technology offers the potential for faster startup of the vaccine manufacturing process in the event of a pandemic because it is not dependent on the egg supply or on availability of the influenza virus. exciting news from the fda, martha. martha: thank you, jonathan. good update. bill: we are just getting the first pictures of some of the hostages freed in algeria. you will hear from them in a moment. we'll have that for you. martha: also, president obama prepares to take his second oath of office. new concerns from americans

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today to request your free quote for the aarp auto insurance program from the hartford. we'll even send you this free calculator. that's: martha: we start with this fox news alert. this is just coming in, brand-new video of some of the hostages. look at these pictures. they have been freed from the terrorists in algeria. a dozen of people, including a handful of americans were taken captive by an al-qaida-linked group in the middle of the satisfactory hair a desert at this polaroid facility. brand-new hour starting right now. these pictures are incredible. they are just coming in. there is so much we don't know about the situation in algeria. welcome to hour two i'm martha maccallum. bill: i'm bill hemmer. there are reports that algerian kidnappers are offering to swap american hostages for two islamist terrorists jailed in the u.s.

terrorists storming a gas complex in eastern algeria taking hundreds hostage. one person is still unaccounted for. here now one of the hostages who was freed. we just got this in a moment ago. >> i think they did a fantastic job, i was very impressed with the algerian army. he feel sorry for anybody who has been hurt. >> everybody is okay thanks to the algerian army, everybody is taking good carv care of us. and we are lucky and everything is good. martha: so many questions remain in this whole thing. amy kellogg joins me now from london. so what can you tell us, amy, what do we know? >> reporter: well, martha, of course this may have been a response to recent events, the operation in mali, but according to the british prime minister today -rpbg, this was a heavily armed, of course we knew, very well coordinated and probably

preplanned attack. what we are hearing that is new, and this is from the "associated press" quoting a source close to the scene, 60 hostages still unaccounted for, missing, possibly dead, or still being held at this point. and let's take one more look at that brand-new video we are seeing of some of the hostages who have been freed. some of them injured, some of them looking okay, some appear to be algerian, some clearly foreigners, many of them saying that beyond being relieved their thoughts are with their colleagues still stuck on that compound. there had been earlier reports from algerian news agencies that 77 foreign hostages were among a total of 650 originally taken who were freed. even the exact number of hostages has been a matter of confusion. now it's sounding like it was just over 130 foreigners taken by this band of terrorists on wednesday. defense secretary leon panetta spoke today here in london.

>> terrorists should be on notice that they will find no sanctuary, no refuge, not in algeria, not in north africa, not anywhere. those who would wantedel attack our country and our people will have no place to hide. >> reporter: we believe things are ongoing at that site. the residential compound may have been cleared but there may still be hostages. there is some sort of standoff we understand at the gas compression area of that vast compound, which has prime minister cameron today said is in one of the most remote corners of the earth and that of course makes everything a lot more complicated. martha: so many people and so many moving parts and would he don't know if there are still americans in there, if they are

being held hostage, if anyone has died. a lot of questions. amy, thank you very much. we'll stay right on top of this story. bill: there are questions at the white house, and white house press secretary addressing the matter saying the u.s. government is still trying to determine the number of american casualties and the president is being briefed regularly by his national security team. >> right now our priority is determining the status of the americans involved and gaining a full understanding of what took place. this is a fluid situation. we are seeking clarity from the algerian government about this matter, and obviously we are focused most intently on the status of americans. you know, we are in conversations and consultation with the algerian government. >> i'm just curious if you were in consultation before the raid. >> i don't have any more details on that. this is a nude situation. i wouldn't want to say something that turned out not to be true.

bill: that was yesterday afternoon, it's still fluid today. carney says the hostage crisis will not affect us support for france as it fights islamist rebels in neighboring mali in mourn africa. martha: let's take a look at how the crisis unfolded. on wednesday gunman attacked the gas plant that housed hundreds of foreign and algerian workers. one day later algerian forces swept in first with a helicopter and then with special forces. today they say the hostages still being held at the plant surrounded by special forces are there and we are still waiting for more information on them, as we have said we'll get that to you when we get it. bill: we have a brand-new poll that president obama is going into a second term with many americans pessimistic or unsure about the economy. 68% says they don't expect to be better off.

for no30% say they will be better off. we have chris wallace. how are you doing. >> i'm doing fine. bill: it's remarkable how this mood has just continued for so many years. and when you see the response in that poll it is still job number one, and that is the economy. >> absolutely, what is there to be optimistic about? here we had the fiscal cliff, the reason we had the fiscal cliff was because this was such a terrible prospect that they of course, our leaders would find some way to avoid it, and we went up over the cliff before they finally made a deal and really didn't deal with the problem at all, they dealt with the faxes, but that certainly didn't deal with the debt issue. we know we're going to have three more nights over the debt limit and sequestration and the government running out of money. why would you be optimistic? bill: some are suggesting we're bouncing off the pwot tomorrow if yobottom if you look at home construction in america. but we have been flat on our

back for some time. republicans in congress are huddling in williamsburg, virginia as we speak. judd gregg said this with regard to the fiscal cliff here. the fiscal cliff experience should have shown the house republicans that taking a hostage you cannot shoot is not a good tactic. that's a republican talking. so what are they saying as they gather on this winter retreat today? it's interesting, we got one piece of news from paul ryan, of course, the vice presidental candidate with mitt romney and the head of the house budget committee an says the fight to have, and the hostage not to take is over the debt ceiling. because obviously if you go -- if you default, if you go over the debt ceiling and there is some technicality whether it's really a default or not, but it would certainly tank the economy and hurt our credit rating and raise interest rates. what ryan is suggesting is you just delay, you extend the debt

ceiling for a few months and then you have the night oversee questions tracing, because there's already a hundred billion dollars in spending cuts that's baked in the cake that will take effect on march 1st. that's the point at which you say to the president if you're the republicans, look, we can either go with that hundred billion dolla dollar cut or work something else but we're going to cut a lot of money out of the budget. bill: can that idea move forward do you think. >> it makes a lot more sense. the republicans have a lot more leverage there and they don't run the risk and the president can't portray them at that point as being willing to default on the full faith and credit of the united states and sink the economy, and have credit ratings dropped and things like that. this is in a sense it's a flip of what happened with the fiscal cliff where one way or another taxes were going to go up on the rich was the bush tax cuts were going to expire. here there are going to be spending cuts that kick in on march 1st, so you can either have it the way of a compromise

or else you just have the sequestration kick in automatically. bill: chris, thank you. you're going to be busy on sunday. we'll watch you in washington on monday for inauguration. >> you bet, look forward tow it. bill: chris sits down with david plouff, that is "fox news sunday" with chris wallace. check out your local listings, and check him out too. thank you sir. martha: there are serious concerns over boeing's new 787 dreamliner. u.s. safety inspectors have joined an investigation on going in japan after one of these planes made an emergency landing, that happened on wednesday morning there. the pilot had spelled smoke in the cockpit. turned out that smoke was caused by a lithium ey ion battery. a similar and recurring problem in many of these planes. nearly all 50 of the 787's have been grounded. would you want to be on the one

that is not? i don't know. that is pending further investigation. bill: it's a big deal for boeing. i think they'll get it figured out. it might take a little bit of time. there are questions about the current american stance in the war on terror and whether that position, that stance is leading to more things like the hostage crisis we are watching in alger kwrafplt a terrific pane alger gentleman. we'll have a panel on that in a moment. martha: there are new details on te'o manti's story. when did he find out, why did he keep it going. we'll talk about that. bill: decades of denials, lance armstrong finally coming clean admitting he took performance-enhancing drugs to win the tour de france. why do athletes continue to lie. dr. keith ablow on that. >> if i didn't like what somebody said, for whatever reasons in my own head, whether i viewed that as somebody being

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bill: dramatic individual yes out of australia where fast-moving brush fires have killed one man and destroyed several homes already. look at that screen. they are battling dozens of fires raging across that country since the australian summer started. wildfires are common in summers there, but record high temperatures and the dry conditions are helping to make things a lot worse. martha: lance armstrong now officially admitting to lying about doping all throughout his professional career, really. he came clean as you well know by now in an interview with oprah winfrey. here is a look at some of it. >> i viewed the situation as one big lie that i repeated a lot of times. this story was so perfect for so long, and i mean that as i try

to take myself out of the situation and i look at it. you overcome the disease, you win the tour de france seven times, you have a happy marriage, you have children, i mean it's just this mystic perfect story, and it wasn't true. i was a bully in the sense that i tried to control the narrative and if i didn't like what somebody said, and for whatever reasons in my own head, whether i viewed that as somebody being disloyal or a friend turning on you or whatever i tried to control that. >> what was for you the flaw, or flaws that made you willing to risk it all? >> i think this just ruthless desire to win. win-at-all-costs, truly. martha: ruthless desire to win, to win-at-all-costs. very telling statement there from lance armstrong. jim gray joins me now, sports

doctor and fox news contributor. and keith ablow, doctor and member of the fox medical team. what i'm particularly interested in right now is the larger culture of our society that we demand this. we demand people to breakthrough these barriers. we start with kid when they are very little, competing in sports, spending hours and hours every weekend competing in different things. how much of that contributes, do you think, dr. keith ablow let me start with you, to the culture that creates a lance armstrong that need to win-at-all-costs and te'o manti as well? >> i'd say very little. because in fact our culture is one that gives ribbons to kids when they don't win. if anything i believe -- martha: that only lasts nor a few years in grade school then it gets quite a bit more cut throat after that. >> i guess that is true. you know what we have to go back to grade school for this. the kind of thing that creates a lance armstrong, or a te'o manti for different reasons perhaps

happened early in life. this is a guy whose father left when he was two, lance armstrong, who has no contact with him. him saying the desire to win-at-all-costs is the answer to this question is not the correct response. the question is, but why did you need to win-at-all-costs? what is the deep emotional need? and for a boy who believes he's unloveable, because his father leaves him and he can never bear to reunite with him, and then you have a stepfather, lance armstrong also doesn't communicate with his stepfather, what happened there? why is winning a race all important, because unless you do that you look inside and you say, i've got nothing inside. that's what keeps him peddling that fast. martha: jim, what do you think about the big question? >> well i think the mantra, martha in all professional locker rooms and taught since very little, if you're not cheating you're not lying.

that is pervasive in sports and acrossment land. that becomes the norm that it's okay. last night lance armstrong said his definition of cheating was to gain an advantage on a rival or a foe an looked it up. if you go to webster's, and all of us can, the real definition is to defraud, swindle, to deceive, influence, to elude, or violate the rules and regulations. so, lance armstrong can't even look up what cheating means and get it right when he repeats it i. do want to say this. martha, i've covered lance armstrong since 1989, early on when he was on the developmental squad down at colorado springs. i texted him after the interview last night and i asked him for his reaction to the interview, and what the reaction has been to the interview an texted me back to say, i don't know the reaction, it's hard to say, i'm off the mainland right now laying low. so he's not even aware of everything that is swirling around him. martha: yes, you know, i mean in terms of this question, you

know, i think about athletes when i was a kid growing up athletes looked like, basically like the rest of us except they were in better shape. now they look like these sort of, you know, they remind me of the superheros that my kids play with and they look like transformers, basically, right? it's so unrealistic and unhuman and i'm wondering how we got to this point where we put sports on this pedestrian today stal. pedstal. i love sports, i love it all. how did we get to this point in society where nothing is as information as this. and at some point it pushes somebody like te'o manti to have to push this whole picture to, sell the whole package. the whole family is counting on him as well. everybody is going to prosper from this whole pig show. keith and then jim. >> listen, i think as we move towards technology, as we move away from our bodies we are going to look to sports more and more as own antidote.

that can fuel some of these demands for super human feats of strength and incredible acts on the athletic fields. i think that that can fuel a demand that can't be met by individuals. and individuals drawn to these sports, maybe those who have a deep need to out perform, who feel very small inside and need to pump themselves up very big, that's the story of each of these people who commit these frauds. they are shattered people. martha: i think to myself, lance armstrong has an opportunity here, jim. he could say you know what, the whole thing stinks to high heaven across the board with awful these sports and i have an opportunity now as one of the most well-known athletes in the world to go out there and talk to kids, to talk to college students and talk to the people who returning and say you know what we have to rethink this. or we'll just keep going and going and going like this with all the people cheating and fake. >> who is going to believe right

now anything that lance armstrong said. if he had that message for kids do you think they'd really listen? the money is so great, and all of these guys have now given up on the pursuit of excellence, it's no longer the pursuit of being great, it's the pursuit of money, the pursuit of power, the pursuit of awful thes all of these things that never came to mind in the days of jesse owens and bab bab ruth. a lot of these people are flawed, we are all flawed. it's not just endemic to athletes. everyone wants to be number one and be remembered. that is at the end of the day what is driving all this. and it's for all the wrong reasons. martha: something to think about. thank you so much. jim gray, dr. keith ablow. bill: you ask him a question, and he says that's not true. and i say, well how do you know. another attack on an american subway system in a major american city.

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making an arrest in a brutal attack that was caught on camera we warn you that some of these images are very disturbing. it shows the suspect approaching the woman as she waits for the train here. my. he lunges at her, he drags her off the bench and onto the tracks below and then grabs her cellphone before walking away. how do people pull off these kinds of heartless, heartless crimes. the victim then climbed up before the train came, thank goodness. it took the officers less than a day, thankfully, to find that guy. >> our best lead in this was

this extremely unique jacket. we wanted to hold that information close to the chest in the hope that we would catch this person. we had information leading us to believe that he was a homeless person in the center city area. martha: never where a very conspicuous jacket when pulling off a crime. he also was found with her phone, so it was pretty easy for them to ascertain his guilt. good, grief, awful. bill: the movie complex in colorado reopening last night months after a gunman opened fire during a midnight screening of the dark knight rises. the theater reopened despite outrage of some of the victims' families. >> we are a community of survivors, and we are a community that is united in our recovery. the reopening of this theater is part of that recovery process.

bill: alicia acuna follows up outside the theater today in aurora, colorado. how did it go last night, alicia. >> reporter: well, bill as you can imagine there were quite a few tears. there were people inside the theater who were shot who were inside that building last night. they were there with people who had family members killed. there were conspiracies responders. they were allowed to wander around that building until a ceremony was held inside what used to be theater nine. some people walked around in silence, just taking it in. some people cried quietly. others chatted comfortably. the governor said everyone takes different paths to warn. >> for many here tonight this is the path to healing and part of that process. you know, the ability to find light where there was darkness,

the opportunity to push towards finding joy and happiness, making sure that you don't allow evil to trump good. >> reporter: a company spent $1 million on renovations. during the tour cinemark could not answer exactly what was done. a number of people rejected the invite by the company saying it was distaste full. bill: you mentioned the fears tears. that was pretty obvious to understand. what was the reaction. what did they tell you, the people that sat throughout ceremony. >> reporter: i talked to one woman who said she didn't think there was really anything that cinemark could do for better or worse to make things any better, but they really had to move on, and i also spoke to a young man who was shot, his name was marcus weaver an sat last night in the same seat where he sat the night of the shooting, an

was sitting next to his girlfriend, ra beck karbgs who was killed that night. he said when he first received the invite from cinemark he he wasn't going to go. but he's glad he changed his mind. the theater will be open tonight, tomorrow night and sunday night. they will show free movies, throughout the weekend, close down and open up for good next week. bill: thank you. a roar a colorado, martha. martha: new developments in the death of a legendary screen star, natalie wood. this story just doesn't go away. why her husband robert wagner says no thank you to an invitation by investigators three decades after her mysterious death. bill: there is breaking news from this hostage crisis, ongoing developments there. this is some of the latest video we have into "america's newsroom." is this a troubling sign of more to come? jack king and kt mcfarland

next.

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predicted this a month ago when she was asked about the raid in benghazi, libya. >> now what is the lesson al-qaida takes from this? once again no consequences. the americans are busy fighting each other not us. i think then we become -- we allow them to become emboldened and this is in effect a green light for continuing to attack americans. bill: some have drawn a comparison between benghazi and algeria. kt mcfarland with us now, so too is general jack keane, a retired 4 star general. good morning to both of you. kt i want to start with you. explain your point that you're making now with regard to algeria and what is happening there. >> here we are four months later. we still have brought nobody to justice for benghazi. we don't even have anybody arrested and interrogating them. what signal does that send? it sends a signal that americans don't come to protect your own. you can kill americans, attack american soil, america doesn't do anything to help you.

why is that important? go become to 1998 the u.s. embassies, two of them in east africa were attacked. we didn'tee tal kwraeut. the u.s.s. cole was bombed. we didn't retal sraeut. osama bin laden himself did a video and said open season on americans, they don't retaliate or respond. then you had september $1th. by doing the name thing again now we are falling into the same trap. although this was not an attack against americans, it was an attack against westerners. bill: the general has a point about how the nature of the al-qaida attacks could be changing now. i want you to explain that, general. do you agree with the point that kt is making there. >> absolutely. we did retaliate in 98. we through some bombs up into afghanistan as a result of the embassy bombings that had absolutely no effect on the al-qaida in afghanistan. but anyway, back to your point, yes, it could be, because the

fact of the matter is their strategic objective, bill has been to trite west and specifically the united states out of the region so they can dominate it. and they've in the past most of these attacks have been government-related facilities or forces. economic interests are very strong between the united states and the west and the middle east and this is clearly an attack, natural gas facility a very large one, huge economic interests of the west, and the united states, this is an attack on that facility. they promised and they have stated as recently as yesterday, that they intend to do more attacks like this. bill: that is interesting. we'll see if that's the case. it's an interesting point to make. for our viewers at home this is a point of interest here. about 20, 30 miles west of the libyan border algeria has dealt with islamist also for the past 20 years. listen, they go in with a heavy hand as we saw yesterday based on the reports out of there. but you have these reports of the french where the u.s. is new

supporting in northern mali, who have taken islamists there who have taken control of half of that country. you have an on going situation in libya with benghazi right here on the map. who knows about the future in egypt. the whole area is being talked about and discussed, however algeria is the focus for the moment. kt with regard to how algeria's government reacted. many were like hang on, don't go in with the heavy hands. when when they get challenges by islamists they do not mess around. is that the best strategy, perhaps for that government or for that country and say, no it's not going to happen here? >> remember, algeria fought a brutal war in the 1990s with islamist extremists. though were beheading priests. the algerians didn't want to have this again. they had to do something very swift and brutal and effective and i think they did. they showed much less regard for

hostages, although it would be great if they rescued. the algerian government wanted to go in and squash al-qaida and make the point that they could protect that vital economic interest of theirs from any kind of an attack. they had a very different objective. go in, go in quickly, don't ask any questions, just kill the guys who are taking over their site. bill: from a military standpoint would you support that reaction? >> well the united states wouldn't do it that way certainly. we can be as responsive as they are, certainly, in terms of acting on the situation, but we would -- our techniques and tactics that we use would be to protect the hostages, at the same time take control and kill, certainly, the terrorist, as many as we could. but we train our people with special techniques to be able to deal with protecting those hostages as best we possibly can. every single mission we go into rerun about eight to ten missions ever night in

afghanistan normally with friendlies or civilians in the area, and we try our very best to kill and capture and do no harm. that is the way we would approach this thing. stphaot ap is reporting a hundred of the 132 hav 13133 have bee131-3133 have been freed. we'll wait for developments. thank you, general jack keane. and kt. martha: the kapt toils on virtual lockdown for monday's inauguration. dozens of law enforcement act sees are taking no chances with this event keeping a very close eye on everything from a high-tech command center they have established. catherine herridge is live from the national mall in washington. it will be a lot more crowded in the coming days. what is the special security designation for in inauguration, catherine? >> reporter: well, thank you, good morning. it's called own nsse, these a

national special security event. a lot of folks are under the mistaken impression that this is a post 9/11 designation but it's actually been having nsse's since the late 90s and the clinton administration. it means the secret service is the lead agency for security. the f.b.i. is the lead agency for intelligence, count tere terrorism, as well as investigations, and fema is the lead agency if there is a need nor any kind of recovery or response to a major incident. earlier this week along with other media organizations we went to the command center for the secret service, this is an undisclosed location here in washington and they are always reluctant to discuss the current threat picture. but what we understand is that there is no specific or kre credible threat right now to the inauguration. >> currently at this time we do not have any credible threats against any of the inauguration events. we will continue to monitor that. what we do ask is that the

public, those attending the event keep their eyes and ears open and report any suspicious activity to local law enforcement or to the f.b.i. >> reporter: it's not just the consideration for a terrorist threat or even an activist tres, there are also considerations just for the weather conditions. as you can see today it's extremely windy, and extremely cold, and when you have hundreds and thousands of people, including the very young and the elderly they may need medical attention as well, martha. martha: yeah it looks like it might be similar to that kind of weather on monday for the big event. catherine, thank you very much. we'll see you down there soon. catherine herridge in washington. so fox news is of course the place to be for the inauguration of president obama. we will have complete coverage every step of the way, beginning monday, january 21st at 11:00am. bill and i will be there in the morning from 9 to 11, in the park. and brett and megyn will take over after that.

we'll be here on sunday as well to do the preview and the inside the white house. bill: that we shall. hopefully we'll stay nice and warm in washington too. there are new details in the case of a star football mayor's fake dead girlfriend. how long did he know it was a hoax and why would he keep it going? >> i personally believe he is a victim of these, i guess tricksters, but i also believe that he did over play the situation in the media, and that is coming to bite him a bit. music: "make someone happy" music: "make someone happy" ♪it's so important to make someone happy.♪ ♪'s so important to make meone happy.♪ ♪make just one someone happy ♪and you will be happy too. why do people count on sunsweet prune it's made only fromn the prunes, nothing else. it works, simple as that. it's a natural source of fiber and five essential vitamins. it's the smart choice for me. stay fit on the inside with sunsweet's amazing juices.

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martha: everybody is still buzzing about this story today. new reports now that the notre dame hien backer te'o manti is telling friends that he knew about the girlfriend hoax in early december, but he says he really had to keep up the lie in order to protect the team as they headed into the big national championship game. he didn't want this to be a distraction, which i guess you can sort of understand. one of the big questions out there is when we're going to hear from him. when will we hear his side of

this whole, sorted story. joining me now is a specialist in sorted stories, mike walters, from tmz. good to have you here today. >> thanks nor having me. martha: talk to me about this. one -frt big questions is this issue of timeline. why did he continue even in interviews to talk about this woman as if she existed after he says he knew she did not? >> well, i can tell you according to them in their printed statement to the media, that on december 6th owe found out while at a espn award show because he got a phone call from the same phone number that he was talking to his quote unquote girlfriend on. when he got the call he realized it was a hoax. now, the issue is, several days later he did an interview with the media, again bringing up his girlfriend, and how she died of cancer and kind of did the whole emotional thing. so he lied. and the problem with lying, especially in the position he's in, is that people start to question your character. and what is going on here is,

look is he a bad person because he did it? well he was protecting his team. if you have ever been involved in sports like that they were heading into a pcs championship game. this was really important to his team and the school. do you make media splash and distract the player. a lot of people would say, including me who is in the media, i think he did the right thing, you protect your team and immediately afterward you start talking about it. martha: that may be the one element of this story that i do understand that makes sense to me. i have a lot of questions about that phone call. you know, because it's like, oh the phone rang, then i knew she was not alive and the whole thing was on a hoax. who was on that phone? did he have a conversation with someone? was it the other guy ronaiah tuiasosopo? or did he ever get that call? or did he just say that he got that call because he knew he needed a catalyst for the gig to be up. >> that is a great point. i can tell you we spoke to somebody yesterday who was kind

of a victim in the same situation, she was a fan, a booster-type person who inner acted with some of the same people on twitter and when she went to meet up with that person at a football game it ended up being ronaiah tuiasosopo. and you recognize that game, very big football family here in the los angeles area. this guy all road lead to him that he was kind of behind the hoax, he's also a family friend of the te'o family. it looks like that's what is going on here. let me tell you something else. doesn't this seem like if this is what happened and this is what they are saying on the record, he got the call and said you know what i have to keep it from my team because of the distraction, it does show, i think that he really did believe this girl existed. a lot of people are saying look, did he know about this? this heisman hype is great for him, running to try to get that award, that his grandma and girlfriend died on the same day, this really helped in the preds. this whole thing shows this guy was naive, he got taken down that road, it was a hoax and he

feels bad about it and he's trying to pick up all the pieces. martha: there are just so many unanswered questions still. how does somebody have a flee-year relationship with somebody they've never met and actually think that is a relationship. everybody wants to interview him. some folks think the best thing he could do is make it go away, just be quiet and never talk about it at all. mike, that's not what you want, that's note what we wafpblt everybody wants to hear the rest of the story. thank you so much mike, pless tour have you with us. we hope to have you soon. >> all right, guys, thanks for having me. bill: the death of natalie wood has taken another strange twist. performer husband robert wagner not giving detectives, apparently what they want. martha: a remarkable recovery more than two months after taking a beating from sandy. dr. marc siegl on the hospital that badly needed to get back online. >> when you face catastrophic events and emerge from those

events you emerge stronger. if anything we are a more united medical center. i'm struck by the spirit of the people who are working here.

martha: this is interesting. actor robert wagner refusing to answer questions in the renewed inquiry into the drowning defendant his wife natalie wood. an attorney for wagner says he has cooperated with authorities since she died back in 1981 and that he has nothing new to add to this story. detectives began reinvestigating the case last year after wood's death was reclassified as a drowning caused by "undetermined factors." she was on a yacht with her husband, wagner, actor christopher walk ken was there that night and the boat captain and she somehow ended up in the

water. the captain has blamed wagner for her death. bill: there are new signs of hope here in new york city, a badly needed hospital is back up and running nearly at full speed 2 months after sandy nailed the northeast. dr. marc siegl is a fox news a-teamer, and a professor at the langone medical center. good morning to you. >> reporter: this is my hospital, bill. very positive news to end the week. this is an amazing story. this is a story of 300 patients who were brought out in the middle of the night, in the middle of super storm sandy with only battery power in the dark. it's a story of 15 million-gallons being pumped out of the hospital basement. and now imagine this. caretakers, with no one to care for walking around, what do i do? imagine what they were thinking. imagine a million patients, close to a million patients with no hospital to go to. they didn't have anywhere to go if they had an emergency.

imagine the caretakers become in business. the hospital reopens in less than two months, labor and delivery reopening, urgent care centers reopening. imagine how they feel. these are courageous individual now back to work. we have sound from dr. dean gross man. he is the head and ceo of our medical center. let's hear what he has to say about this. >> no one person does anything, it's a team of people. they worked incredibly hard. they were aligned, very integrated. everybody knew what was going on, and the priorities were clear-cut. >> reporter: he's talking about teamwork, buy. it's all about teamwork, and the staff this week has ruby slippers. dorothy's ruby slippers, there is no place like home. they are back home, the patients are back home. i met the first woman that delivers a baby there. she went in right in when her water broke, she didn't know what hospital she was going to

go to. bill: that is quite a met a for. it hits the time when the flu has been nasty here in the northeast. yet one of the emergency rooms is not even fully operational. how are they dealing with that. >> reporter: they are not handling 911 calls yet but they are handling everything, heart attacks, trauma, they are handling the flu epidemic. they opened just in time for the flu epidemic. we talked to the head of the emergency room services there about exactly how they are handling the flu. >> we know that a lot of people have been affected by the flu and we are prepared to help treat them. >> reporter: walk me through what it will be like to treat a flu patient coming in here. >> it's to try to prevent the spread of the flu. we'll mask our patients, we'll make sure that there is good hand washing technique, and those patients who will benefit from treatment we'll begin treatment for them. >> reporter: what up lifting news that is. bill: what a story. >> reporter: good to see you, bill. bill: good to see you too. martha: a major medical

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